Amsterdam, January 23, 2003 - Maxtor Corporation (NYSE: MXO) today
announced its financial results for the fourth quarter ended December 28,
2002.Revenue for the quarter was $1.038 billion.The Company reported
net income on a GAAP basis of $3.6 million, or $0.01 per share.Included
in the GAAP net income was a charge of $20.6 million for the amortization
of intangible assets, $0.9 million in stock compensation expense and
$12.3 million in severance expense related to a reduction in force
announced in December 2002.On a pro forma basis, excluding these
charges, Maxtor reported net income of $37.3 million, or $0.15 per share.
During the third quarter of 2002, the Company exited its network attached
storage business and as a result, net income in prior periods has been
restated to reflect both continuing and discontinued operations.In the
fourth quarter of 2001, Maxtor reported revenue of $1.071 billion from
continuing operations, a net loss from continuing operations on a GAAP
basis of $149.3 million, or $(0.63) per share, and a pro forma net loss
from continuing operations of $34.2 million, or $(0.15) per share.
"We are extremely pleased with our return to profitability in the
fourth quarter," said Paul Tufano, acting president and chief executive
officer."These results were driven by solid execution on the
initiatives that we established in early 2002, coupled with a favorable
demand environment."
"We completed the transition of desktop manufacturing to Maxtor
facilities in Singapore by the end of the third quarter.We experienced
steady improvements in the yields on our new products throughout the
fourth quarter, providing us with an improved mix of higher margin 60 and
80 GB per platter drives.These were primary drivers in the increase in
our gross profit margin from 7.0% in the third quarter to 16.2% in the
fourth.
"Fourth quarter shipments of server drives grew to 570,000 units.
Operating expenses continued to decline in the fourth quarter.In
December, we announced a reduction in force of approximately 500
employees, however we do not expect to see the full benefits from this
reduction until the first half of 2003.Looking ahead, there are many
opportunities for Maxtor to grow and further improve its profitability.
We look forward to continued momentum, as we expand our product lines,
enhance manufacturing efficiencies, and extend our technology
leadership," Mr. Tufano concluded.
Fiscal Year 2002 Results
For the fiscal year 2002, revenue totaled $3.780 billion.The
Company reported a net loss from continuing operations on a GAAP basis of
$260.6 million, or $(1.09) per share.In 2001, Maxtor reported revenue
from continuing operations of $3.766 billion and a net loss from
continuing operations on a GAAP basis of $598.2 million, or $(2.89) per
share.
About Maxtor
Maxtor Corporation (www.maxtor.com) is one of the world's leading
suppliers of information storage solutions. The company has an expansive
line of storage products for desktop computers, high-performance
Intel-based servers, and consumer electronics. Maxtor has a reputation as
a proven market leader built by consistently providing high-quality
products and service and support for its customers. Maxtor and its
products can be found at www.maxtor.com or by calling toll-free (800)
2-MAXTOR.Maxtor is traded on the NYSE under the MXO symbol.
This release contains forward-looking statements concerning the outlook
for 2003.These statements are based on current expectations and are
subject to risks and uncertainties which could materially affect the
company's results, including, but not limited to, market demand for hard
disk drives, market acceptance of the company's products, the company's
ability to execute future development and production ramps and utilize
manufacturing assets efficiently, changes in product and customer mix,
the availability of components, pricing trends, actions by competitors,
and general market conditions.These and other risk factors are
contained in periodic reports filed with the SEC, including, but not
limited to, the Form 10-K for fiscal 2001 and recent 10-Qs.Maxtor is
under no obligation to (and expressly disclaims any obligation to) update
or alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
Voor meer informatie:
Maxtor
Annie Bernard
Tel: 0033 (0)1 64 53 24 18
annie_bernard@maxtor.com
Fleishman-Hillard Nederland
Remco Vogelzang
Tel:(0)20 346 08 80
info@fleishman.nl